YAOJI TECHNOLOGY(SZ:002605) Guoxin Securities·2025-09-03 12:10Investment Rating - The investment rating for the company is "Outperform the Market" [5][18]. Core Views - The company experienced a decline in revenue and net profit in the first half of the year, with revenue at 1.438 billion yuan and net profit at 256 million yuan, representing year-on-year decreases of 24.64% and 9.98% respectively [1][8]. - The decline in performance is attributed to short-term fluctuations in the digital marketing and playing card businesses, although the gross margin has improved [1][2]. - The company is focusing on new business opportunities in card collectibles and has made strategic investments in related sectors, indicating potential for future growth [3][17]. Summary by Sections Financial Performance - In the first half of the year, the company achieved operating revenue of 1.438 billion yuan and a net profit of 256 million yuan, down 24.64% and 9.98% year-on-year, respectively, with a diluted EPS of 0.61 yuan [1][8]. - For Q2 2025, the company reported revenue of 660 million yuan and a net profit of 115 million yuan, reflecting declines of 28.8% and 13.7% year-on-year, respectively [1][8]. Business Segments - The gaming business generated revenue of 481 million yuan, down 6.33% year-on-year, with a stable gross margin of 96.39% [2][15]. - The digital marketing segment saw a significant revenue drop of 40.76% to 520 million yuan, but the gross margin improved to 8.16% [2][15]. - The playing card business reported revenue of 429 million yuan, down 12.72%, with a gross margin of 29.93% [2][15]. Future Outlook - The company maintains its profit forecast, expecting net profits of 617 million yuan, 669 million yuan, and 701 million yuan for 2025, 2026, and 2027, respectively, with corresponding diluted EPS of 1.49 yuan, 1.61 yuan, and 1.69 yuan [3][18]. - The current stock price corresponds to a PE ratio of 19, 18, and 17 for the years 2025, 2026, and 2027, indicating a favorable valuation [3][18].